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Parallar
How it works The rule The proof Architecture Risk engines Partnerships On testnet
Documentation Open the app
For asset holders
Keep the position. Cap the loss.
You hold a tokenised asset and you want the return, not the tail. Cover the position against a missed payment, pay a premium out of the coupon, and be paid from a funded reserve if the issuer fails. There is no claim to file and no committee to persuade.
Buy cover I want to underwrite instead
The flow
Four steps, then nothing to do
01 / Pick
Choose the reference
Find the cell covering your instrument. Its trigger, engine version and reserve are published before you commit anything.
02 / Size
Set notional and band
Cover all of the position or part of it. On a boundary shape you also choose where cover attaches and detaches.
03 / Bind
Commit and pay
Your cover is committed on-chain as a sealed value. The cell holds collateral against it before the wrap exists.
04 / Hold
Nothing, until it triggers
If the issuer pays, the premium is the cost of certainty. If it does not, the proof settles and you are paid.
A worked position
What cover costs, and what it returns
A $25m position on an emerging-market sovereign, covered on the 18 to 33 point loss band. The premium is withheld from the coupon by the cell acting as paying agent, so nothing leaves your account separately.
Cover the tail and the yield falls. That is the trade, stated plainly: you give up part of the spread to remove the part of the distribution you cannot survive. The protected yield is what remains, and it is knowable before you bind.
Egypt 7.625% 02/2032 · boundary
Position notional$25,000,000
Loss band covered18 → 33 pts
Maximum recovery$3,750,000
Premium strip312 bps
Annual premium$780,000
Gross yield7.63%
Net protected yield4.51%
Illustrative figures on testnet. Pricing is produced by a pinned engine and is checkable against its published receipt.
What you are actually buying
Four properties worth checking
The money is already there
Cover is never sold beyond the reserve backing it. You are not holding a counterparty's promise to find the funds later; the collateral was posted before your wrap existed, and the contract checks that on every purchase.
Your size stays private
How much cover you bought is sealed on-chain as a commitment. The protocol enforces the totals without ever revealing the parts, so hedging a position does not broadcast your exposure to the market.
Nobody decides whether you are paid
A verified proof authorizes settlement. There is no adjuster, no discretionary vote and no admin key that can withhold a payout from an admitted party. The gate refuses at the door, never at the exit.
The wrap travels with the asset
Cover is an on-chain asset, not a bilateral contract locked to you. Sell the protected position and the protection goes with it, or surrender the wrap mid-life for a pro-rata rebate of the unearned premium.
When it triggers
You are paid what the formula says, not what you argue for
The settlement program reads the payment record, computes the shortfall against what was owed, and scales your committed cover by it. The contract verifies that computation and releases the payout. You do nothing.
Your payout
payout = cover × (shortfall ÷ owed)
A partial payment produces a partial payout. A full payment produces no proof at all, and there is nothing to claim. Protection that did not trigger cannot be claimed by anyone, including you.
Before you commit
The honest limits
Parametric, not indemnity
Cover pays on a defined trigger, not on your actual loss. A price collapse without a missed payment is not a covered event.
The reserve is per cell
Each cell stands alone and is capped at its own collateral. A cell that exhausts its reserve fails alone, and no other cell is called on to cover it.
The inputs are a trust assumption
A proof guarantees the computation, not that the payment snapshot is the canonical truth of the world. That source is disclosed, not hidden.
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Cover a position on testnet
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